The investors reacted negatively about the announcement of the D, but I wonder why. I think the strategy is obvious and brilliant: By creating something so desirable that Model S owners will want to have it, he has them contemplate to sell their Model S and order the D. Many will actually follow through, cause theyre affluent people who want to play and have the latest and greatest! Boom, a used car market for EVs is created! The background: Musk is missing competition! Hes said that before many times. Hes disappointed at the fact that the other car makers arent coming up with anything to be taken seriously. Why would he want competition? Simply because it would raise awareness and develop the market for EVs faster. His competition are not other EVs but the millions of fuel driven cars (ICs)! He needs other manufacturers to help him change the mindset about EVs. With the creation of the D he does his own little market development. So far all Model S drivers have felt that they have the best car in the world. No need to sell it, cause they isnt anything that theyd rather have. And with the reliability and durability of that car it could have stayed that way for a long time. Until this week! With the D he has created serious desirability. Its the same strategy that Apple has successfully followed for years, now: Your iPhone 5 si only the coolest thing in the world until an iPhone 6 becomes available. Instantly you look at your 5 with different eyes. Its simple: if you cant find new customers, sell something new to your old customers. So now quite a few Model Ss will hit the used car market. Obviously they will be not as expensive as when bought new. So here is one very clever step towards a more affordable TESLA. While Musk is developing the Model E - and this will still take a couple of years - he has created a slightly cheaper Tesla: A used Tesla! Brilliant move! Just today I talked to a TESLA roadster driver in town. He told me how hes been wanting this car but wasnt able to afford it. Then he found a used one. Probably still not cheap, but certainly just below that level where he simply couldnt resist anymore. Consider a used Model S, maybe a year old and some 16.0000 km (10.000 mls) on the clock.: In terms of wear and tear - there will be none. It will look, feel, drive as if it was new! What would you be willing to pay for it? Brilliant move!
Posted on: Sat, 11 Oct 2014 15:02:56 +0000
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